The strategic value of globally aligned disclosures: Round Table Report

Against a backdrop of economic uncertainty, capital flight concerns, and intensified competition for global capital, ISF and MP Ryan Turnbull, Parliamentary Secretary to the Minister of Finance, hosted key players to reach consensus on fundamental questions for the future competitiveness of Canadian capital markets.

We asked: What is the value of globally aligned sustainability disclosures for Canadian investors and for the country’s economic competitiveness as a whole? What are the costs and benefits? And what policy and market actions are needed to ensure disclosure regulations support economic growth and financial stability?

The event brought together parliamentarians, federal officials, regulators, issuers, investors, academics and standard setters. The central conclusion supported by many in attendance was that the issue is no longer whether disclosure matters, but how Canada should implement mandatory disclosures in a way that is proportionate, phased, and aligned with global practice.

Participants described disclosure regulation as a strategic market infrastructure that investors need, rather than a niche reporting exercise. Evidence presented at the roundtable by academics, civil society and market actors suggested that mandatory disclosure is broadly beneficial for capital markets. We also heard that as Canada looks to diversity trade and attract foreign investors, our most important partners in Asia and Europe are far more advanced in adopting sustainability disclosure regulations.

Key Takeaways:

• Canada is increasingly out of step with major markets moving toward disclosures aligned with the International Sustainability Standards Board (ISSB, the authoritative global standard); 40 jurisdictions are already using or moving toward the ISSB baseline, representing 60% of global GDP and more than 40% of global market capitalization.
• The market case presented was practical rather than ideological: stronger disclosures was associated with better liquidity, lower crash risk, more efficient pricing of risk, and stronger access to foreign capital.
• Implementation design matters. The evidence that was presented suggested better outcomes where disclosure is mandatory and government-backed, but it also showed that reporting quality does not improve automatically without guidance and standardization.
• Canada’s market structure argues for proportionality. With roughly 90% of issuers in small-, micro-, or nano-cap categories, a one-size-fits-all approach would create unnecessary burden and could generate unintended competitiveness risks.
• The most credible path discussed was a phased Canadian model: ISSB baseline, large issuers first, Scope 1 and Scope 2 before Scope 3, and delayed introduction of more complex scenario analysis until issuer capability improves.

For more detail on the Round Table, download and read the full follow-up report here.

And access ISF’s recent Briefing Note: “Will mandatory sustainability disclosures strengthen Canada’s capital markets?” here.